Bank of America: JD Logistics (02618) Acquisition of Local Instant Delivery Service Attractively Priced, Sets HK$16 Target

Stock News
10/10

Bank of America issued a research report stating that JD LOGISTICS (02618) plans to acquire the local instant delivery service business from JD Group-SW (09618) for approximately $270 million. The bank believes the acquisition price is attractive, as it trades below the 12.8x to 21x projected 2025 P/E ratios of franchise express delivery operators. The acquisition price represents 52% of the $520 million that JD Group paid to privatize Dada Group in June this year. Bank of America maintains a "Buy" rating on JD LOGISTICS with a target price of HK$16. The bank considers JD LOGISTICS' valuation attractive and expects that fourth-quarter net profit may rebound, potentially serving as a catalyst for the stock price.

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